Previously, reports suggested the US Department of Defense was considering adding Semiconductor Manufacturing International Corporation (SMIC) to an Entity List along with Huawei, ZTE and more than 70 Chinese tech firms, barred from doing business with US firms without a licence, as part of the ongoing trade war between Washington and Beijing.
The United States Department of Commerce has reportedly sanctioned China’s biggest chipmaker, Semiconductor Manufacturing International Corporation (SMIC), curbing exports from the company, according to a letter cited by the Wall Street Journal (WSJ) on Saturday.
According to the Commerce Department’s dispatch to the Shanghai-based firm, the WSJ reports, US companies will now need a licence to export certain products to China’s largest chipmaker, because of the “unacceptable risk” that SMIC products could be used for military purposes.
An SMIC spokeswoman cited by the WSJ said in an emailed statement that the firm had not yet received an official notice of the sanctions and was looking into the situation.
The chipmaker reiterated that it has no relationship with the Chinese armed forces and does not manufacture goods for any military end-users or uses.
There has not been any official comment on the report from the US Commerce Department.
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